Details Title: 1051H Chapter 32 Description: Gregory Mankiw Textbook Definitions. Jeffrey Milyo's Class Total Flash Cards: 7 Created: 11/05/2008 09:35:20		New Users: To study from this flashcard set, or to create your own your own study flash cards, REGISTER HERE. Existing Users: CLICK HERE. Additional Economics Flashcards
Cards in this set: Term national saving (S) = Definition domestic investment (I) + net capital outflow (NCO) (net capital outflow aka net exports NX) Term at equilibrium interest rate Definition the amount that people want to save exactly balances the desired quantities of domestic investment and net capital outflow Term in an open economy Definition government budget deficits raise real interest rates, crowd out domestic investment, cause the currency to appreciate, and push the trade balance toward deficit Term trade policy Definition a government policy that directly influences the quantity of goods and services that a country imports or exports Term capital flight Definition a large and sudden reduction in the demand for assets located in a country Term trade policies do not affect the Definition trade balance Term capital flight from Mexico increases Mexican interest rates and Definition decreases the value of the Mexican peso in the market for foreign-currency exchange